10 Wachovia executives likely to get $98 mn

NEW YORK: Ten executive officers of financial major Wachovia Corp, which has agreed to be acquired by its rival Wells Fargo, are likely to receive $98.1 million as severance package.

The merger of Wachovia with Wells Fargo, estimated to be worth $15.1 billion, is expected to be complete by December this year.

The 10 executives officers would receive the amount assuming that the merger is complete as scheduled.

"...all Wachovia executive officers, who have employment agreements, experience a qualifying termination of employment immediately thereafter, the 10 executive officers as a group would be entitled to receive an aggregate amount of up to approximately 98.1 million dollars, as severance payments," Wachovia said in a filing to the US Securities and Exchange Commission on yesterday.

Wachovia has entered into employment agreements with all of its executive officers, excluding its President and Chief Executive Officer Robert K Steel.

The employment agreements generally provide for certain severance benefits in the event of a termination of the executives' employment by Wachovia without "cause" or by the executive for "good reason" following a change in control.

Wells Fargo emerged as the suitor for Wachovia, edging out financial services major Citigroup last month. Wells Fargo would be acquiring Wachovia for $15.1 billion in an all stock transaction.